On Friday, March 10, 2023, the second-largest banking collapse in United States history occurred. Silicon Valley Bank (SVB), a stalwart of the startup community, was shut down by California regulators, with the Federal Deposit Insurance Corporation (FDIC) stepping in as the bank’s receiver. While it seems that the FDIC $250,000 limit on insured accounts has been addressed with the federal government’s promise to make all depositors “whole,” many founders are still rightly concerned.
While we wait for the dust to settle and watch as the impact on the broader economy continues to develop, we are confident in the startup community. For founders and business owners, this is just another bump in the road, another leap of faith, another unprecedented time. And yet, here we are. The path that you’re on, chasing your dreams, upending markets, and making the world a better place, is a risky one.
While Embroker did not hold any funds at SVB, we took immediate steps to support our community of startup and small business customers affected by the collapse of SVB. We reached out to confirm our stability in this moment of insecurity, quickly acquired legal counsel for our clients, if needed, and informed them of our claims process. Then, as financial fraud and cybersecurity issues arose, we again reached out to offer tools, advice, and steps to take for mitigating the risk of social engineering and ransomware cases.
Given the anxiety and fragility of this moment, it was crucial for us to let our customers know that we are strong, ready, and willing to support them through this time of uncertainty. After all, isn’t that what you’d expect from a partner trusted to help you identify your company’s risks?
We are working closely with our banking partners, cybersecurity team, as well as our customers, to make sure that we can provide them with the support, resources, and, most importantly, advice on the best coverages to navigate uncertain times.
In times like these, it’s easy to give in to the unpredictability, the unknown. But startups have always shown tremendous resilience, and, especially now, that has never been more true. The possibility of what your ideas can do is always worth taking the risk. At Embroker, we’re making risks just that much easier to take. Not just for your sake, but for everyone.
Thank you to our partners and teams for continuing to support our customers.